Table 1 Description and construction of the variables
From: The Balassa-Samuelson effect reversed: new evidence from OECD countries
Abbr. | Name | Definition | Source |
|---|---|---|---|
RER | Real exchange rate | Log(CPI / nominal exchange rate to USD) | IMF, IFS |
TFP.TPDBi | TFP of tradables | Solow residual | OECD, PDBi |
TFP.NTPDBi | TFP of non-tradables | Solow residual | OECD, PDBi |
LP.TSTAN | LP of tradables | Log(value added/hours worked) | OECD, STAN |
LP.NTSTAN | LP of non-tradables | Log(value added/hours worked) | OECD, STAN |
TFP.TISDB | TFP of tradables | Solow residual | OECD, ISDB |
TFP.NTISDB | TFP of non-tradables | Solow residual | OECD, ISDB |
LP.TISDB | LP of tradables | Log(value added/hours worked) | OECD, ISDB |
LP.NTISDB | LP of non-tradables | Log(value added/hours worked) | OECD, ISDB |
CA | Current account | As % of GDP | OECD, EO |
DPOP | Population growth | Δ log(population) | PWT |
GDP | Real GDP per capita | Log(real GDP per capita) | PWT |
GOV | Government spending | As % of GDP | OECD, EO |
NFA | Net foreign assets | As % of GDP | WB, WDI |
RI | Long-term real int. rate | Gov. bond yield long term—CPI | IMF, IFS |
TOT | Terms of trade | Log(export prices/import prices) | OECD, EO |
ULC | Unit labor costs | Log(labor cost/output) | OECD, ULC |